Loeb v. Commissioner
United States Tax Court
X was indebted to Y in the sum of approximately $ 750,000. He owned stock of a corporation which was pledged to a broker to secure his account in the sum of approximately $ 250,000 and the account of a business associate. In 1935 X and Y entered into a contract whereby Y was given a lien upon this stock and was entitled to the payment of a certain share of the dividends thereon for 10 years.
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X was indebted to Y in the sum of approximately $ 750,000. He owned stock of a corporation which was pledged to a broker to secure his account in the sum of approximately $ 250,000 and the account of a business associate. In 1935 X and Y entered into a contract whereby Y was given a lien upon this stock and was entitled to the payment of a certain share of the dividends thereon for 10 years. Y also received certain choses in action from X which, when credited on his indebtedness, reduced it to approximately $ 500,000. If at the end of 10 years this latter amount had not been paid by the…
1Opinion of the Court
OPINION.
Kern, Judge:
Respondent has made alternative and inconsistent determinations, first, that the petitioner received income in 1939 and 1940 consisting of dividends paid on the stock involved here after it was transferred to the trusts created by him, or, second, that he realized capital gain by reason of the transfers of the stock to the trusts.
Considering first the contention that the dividends received by the trusts constituted taxable income to petitioner, respondent relies on sections 22 (a), 166, and 167 of the Internal Revenue Code.
It is respondent’s view that the dividends are…
2Cases cited1 opinion
- Driscoll v. CommissionerUnited States Tax Court · 1944
3Cited by3 opinions
- Vreeland v. CommissionerUnited States Tax Court · 1951
- Loeb v. CommissionerUnited States Tax Court · 1945
- Vreeland v. CommissionerUnited States Tax Court · 1951